Apple will receive a much-needed boost in the content industry, where it trails well behind companies like Spotify and Walt Disney, thanks to its relationship with the second-biggest telecoms company in India.
In an effort to increase revenue from services like applications, payments, and media globally, the massive American technology company plans to provide free music and video streaming to a large portion of Bharti Airtel’s 281 million users.
With this contract, Apple is expected to significantly increase the number of users for Apple TV+ and Apple Music in a nation where it has historically placed a strong emphasis on manufacturing in order to diversify its supply chain outside of China.
Although Apple produces a large number of its iPhones in India, its devices only account for 6% of the 690 million cellphones in the nation, down from roughly 2% in 2019, according to statistics from Counterpoint Research.
According to Nitesh Kripalani, the former head of Amazon Prime Video in India, “the move speaks of Apple’s ambitions for India.”
“The strategy is a time-tested method to catapult presence in markets it considers important.”
Since 2019, Apple has provided free access to Apple Music through select Verizon mobile data plans in the United States. Additionally, starting in May, Apple TV+ will be included in a Comcast streaming package.
In India, Wynk music app users who have paid for an account on Airtel will have access to Apple Music; Wynk will eventually close.
Only a small portion of postpaid Airtel subscribers utilise the ad-free version of Wynk, according to a telecom industry insider who wished to remain anonymous since the numbers are proprietary. About 7 million consumers have access to it.
Outside of regular business hours, neither Apple nor Airtel responded to requests for comment.
MUSIC QUARTERLY
Though its collection is less than Spotify’s, Apple Music is more suited to the Indian market than the primarily English Apple TV+, with content including Bollywood and regional-language songs, according to Counterpoint co-founder Neil Shah.
An anonymous Indian music industry source estimated that 200,000 people use Apple Music, 500,000 use Wynk, 1.4 million use Gaana, and 3 million use Spotify. The source was not permitted to disclose the numbers to the public.
Outside of regular business hours, neither Spotify nor Gaana responded to calls for comment.
According to figures from industry association FICCI and consultants EY, out of around 185 million users of ad-supported and ad-free applications in India last year, only roughly 7.5 million consumers paid for audio streaming services.
According to the telecom industry insider, Airtel would pay Apple a per-user cost “significantly” less than the $1.20 per month that is currently charged in India for Apple TV+ and Apple Music.
As it moves to close Wynk and use Apple Music to increase income and improve customer loyalty, it will save millions of rupees in license in exchange, according to a second telecom source. “Airtel realised its strength is distribution, not content creation,” the unnamed insider stated, requesting anonymity since they lacked permission to speak about the subject.
STREAMING VIDEO
Apple is a minor participant in the Indian video streaming market; according to Counterpoint, it has less than a million users.
With 38 million subscribers, Disney+ Hotstar leads the industry; estimates put Netflix’s user base at about 10 million.
Netflix has stated repeatedly that it aims to reach 100 million customers, without providing a specific time range, suggesting the market’s potential.
Apple TV+ is well-known for its original shows, like “The Morning Show” and “Slow Horses,” but competitors Netflix and Disney offer more Hindi programming, including films in other languages and performers from Bollywood.
The most popular sport in India, cricket, is also streamed on Disney and Reliance Industries’ JioCinema. The two firms are combining their Indian media holdings to form the largest entertainment company in the country.
According to the second telecom source, Airtel, which is just behind Reliance Jio in terms of subscribers, intends to provide bundles that include multiple months of free access to Apple TV+.
Even though more homes will have access to Apple TV+ as a result, development may be impeded because the service’s “offering is still not optimised locally that much,” according to Shah of Counterpoint.